49 CFR Part 376 Lease Agreement (Truth-in-Leasing)

Definition

49 CFR Part 376 (FMCSA's Truth-in-Leasing rules) governs the lease agreement: the federally regulated written contract under which an authorized motor carrier (the lessee) leases equipment from an owner-operator or other entity (the lessor) and operates that equipment under the carrier's MC authority. Required elements under §376.12 include exclusive possession, identification of equipment, settlement terms, charge-back disclosures, and insurance allocations. The lease must be in writing, signed by both parties, and a copy must be carried in the equipment along with the carrier's authority documents. Owner-operators leased on under 49 CFR 376 operate as independent contractors but the carrier remains the regulated entity.